Elon Musk's SpaceX Sued Over Alleged CA Labor Violations

AOL/Engadget
Business magnate/inventor Elon Musk's SpaceX is the subject of two recent lawsuits from former employees stemming over alleged California labor law violations. The Hawthorne, California commercial space exploration venture faces lawsuits alleging violations over state mandated breaks and uncompensated wages. In another lawsuit, former workers allege that they were not given proper notice of recent layoffs. Both suits are seeking class action status, according to CNN Money.In the first suit, employees claim that they were not allowed breaks for state mandated food and rest periods. The suit cites the state's mandatory half hour breaks for five hours worked, as well as a second half hour break owed to employees for ten hours of work. Furthermore, employees claim they had to work "off the clock" as well as round down their work hours, two attempts to reduce wage payouts. The other suit, filed August 4, alleges that SpaceX violated state laws for companies with 50-499 employees by not providing 60 days written notice of a July company downsizing. 200 to 400 employees were affected by the downsizing.

SpaceX, another endeavor of Tesla Motors founder Musk, faces the latest hurdle his company has faced since its founding in 2002. However, the company does have a $1.6 billion deal with NASA to conduct ongoing resupply flights to the International Space Station. Even with the NASA deal in place, Musk and SpaceX have faced adversity from their competitors and government activity.

At a recent SpaceX showcase featuring several high-ranking government officials, Musk stated his frustrations to the media. On his competition, Musk stated, "Lockheed and Boeing are used to stomping on new companies, and they're certainly try to stomp on us." Yet, his biggest complaint was for another U.S. institution, the Air Force.

"Our toughest competitors on the international launch market are the Russians, and the U.S. Air Force sends them hundreds of millions of dollars every year for Russian engines," explained the composed, yet slightly frustrated CEO/founder. "So not only do we not have access to our own national launch capabilities...Our own U.S. Air Force is funding the Russians to compete against us. It's super messed up."